Achieving Corporate Sustainability & Operational Goals With Renewable Energy

Achieving Corporate Sustainability & Operational Goals With Renewable Energy

Achieving Corporate Sustainability & Operational Goals With Renewable Energy

by: Stephanie Lee | October 25, 2023

Renewable Electricity Drivers for Companies | ClimeCo Blog

In a previous blog, we outlined how renewable electricity purchases factor into greenhouse gas (GHG) accounting calculations and the different levers companies might pursue to purchase renewables. Several exciting developments have happened since then:

• Over 2,000 new companies have formally committed to Net-Zero [1]
• The Inflation Reduction Act (IRA) passed with new incentives for renewables [2]
• Total renewable energy capacity reaching 4,500 gigawatts (GW) of new renewable electricity capacity has come online globally [3]

Naturally, the next question is: How can companies use this information and new developments to advance their climate and operational goals?

This blog builds on the previous post, detailing how companies use corporate renewable energy procurement to achieve their goals and develop a renewable electricity procurement strategy. 

Renewable Electricity Drivers for Companies

Our first blog post highlighted the benefits of using renewable electricity to achieve corporate decarbonization goals. However, companies also use renewable electricity to achieve operational, financial, and ESG goals beyond decarbonization. In addition to achieving sustainability goals, top company motives for procuring renewable electricity include achieving an attractive ROI, hedging against increasing electricity prices and enhancing corporate reputation.

Corporate Motives to Pursue Renewables [4]

Renewable electricity can help companies achieve these goals by:

Reducing electricity costs. The levelized cost of energy has dropped over 30% for wind and solar over the past ten years. [5] These declining costs mean that companies can procure renewables that are cost-competitive or cheaper than fossil fuels in many cases. Additionally, utilities and electric suppliers are increasingly developing new, easy-to-enroll programs for commercial and industrial customers to take advantage of declining costs without contracting separately with a renewable energy developer.

Providing long-term operational stability. For companies that want to lock in prices for a longer-term duration, many opt for power purchase agreements (PPAs). PPAs are contractual agreements for energy for 10 to 25 years. These agreements allow companies to budget for long-term pricing without worrying about market volatility.

Increasing brand credibility and supporting social impact goals. As previously mentioned, renewable electricity helps companies decarbonize and, by extension, positively impacts the environment through improved air quality and reduced impacts on water. [6] Procuring renewable electricity and having a specific project to point to can demonstrate a brand’s progress towards its environmental goals and show how companies are making tangible impacts. Additionally, companies can embed social impact goals into their procurement by supporting projects in or near disadvantaged communities, selecting procurement options that support local communities (e.g., community solar), and setting workforce requirements such that the local economy benefits.

Given the wide variety of benefits, corporate renewable electricity procurement has accelerated over the past decade from less than 1 GW before 2014 to over 16 GW in 2022 the United States alone. Additionally, the number and types of companies procuring renewable electricity have continued to diversify. These companies provide valuable case studies for others starting their procurement journeys. 

Corporate Renewable Energy Procurement in the U.S. 2008 – 2022 [7] 

How to Get Started

Understand your usage. Developing a renewable electricity strategy starts with understanding your existing and planned electric use. Companies should gather utility bills and calculate annual electric usage, costs, and greenhouse gas emissions. Companies should also add assumptions on how usage might change in the future, such as additions to facilities and plans for remote workers to return to offices.

Outline your priorities. Next, companies should outline their procurement priorities, including financial, operational, and ESG goals, with a cross-functional team of impacted parties.

Questions to consider:

• Are there any budget, staffing, or other constraints that the procurement plan should include?
• How important are social impact goals?
• Should specific sites be prioritized over others?
• How soon does the project need to be implemented?

These priorities will help guide decision-making and ensure the resulting strategy meets stakeholder expectations.

Identify feasible options to meet priority criteria. After outlining the company’s priorities, the next step is determining which viable options meet the priority criteria. As described in our previous blog, companies have several options for renewable electricity procurement, including onsite renewables, utility or electric supplier programs, offsite PPAs, and energy attribute certificates (EACs). Companies should assess opportunities for implementing these options and whether they meet the defined priority criteria. The outcome of this step should be a prioritized list of renewable energy opportunities to pursue.

Develop an implementation plan. Once the priority options are defined, the final step is to develop an implementation plan. This might include developing a request for proposal (RFP) for onsite or offsite PPAs, contacting the local utility, or contacting a broker, like ClimeCo, for EACs. The plan should align closely with the stated priorities regarding timing, budget, and staff resourcing.

ClimeCo supports clients in their efforts to align with renewable energy procurement. To learn more, please reach out to Stephanie Lee.

[1] Science Based Targets – Companies Taking Action 
[2] Environmental Protection Agency (EPA) – Summary of Inflation Reduction Act
[3] International Energy Agency (IEA) – Renewable Power on Course to Shatter More Records
[4] Environmental Protection Agency (EPA) – The Benefits and Costs of Green Power
[5] Lazard’s Levelized Cost of Energy Analysis – Version 16.0, April 2023
National Renewable Energy Laboratory (NREL) – A Retrospective Analysis of the Benefits and Impacts of U.S. Renewable Portfolio Standards 

[7] Clean Energy Buyers Association (CEBA) – CEBA Deal Tracker Q2 2023 Public

About the Author

Stephanie Lee is on ClimeCo’s Sustainability, Policy, and Advisory team. Her background is in energy, renewables, and sustainability. Specifically, her work has included decarbonization planning, renewable energy strategy development for corporates, and go-to-market strategy development for renewable energy developers, asset owners, and utilities. She has worked with various industries, across consumer-facing and industrial clients.

Global Environmental Solutions Provider ClimeCo Adds Industry Veteran Dan Nugent as Vice President of Industrial Innovations & Government Affairs

Global Environmental Solutions Provider ClimeCo Adds Industry Veteran Dan Nugent as Vice President of Industrial Innovations & Government Affairs

Nancy Marshall, SVP, Marketing
+1 484.415.7603 or 

Global Environmental Solutions Provider ClimeCo Adds Industry Veteran Dan Nugent as Vice President of Industrial Innovations & Government Affairs

New hire continues company’s rapid growth, extends team of highly respected sustainability leaders.

BOYERTOWN, Pennsylvania (October 12, 2023)
Continuing its recent growth wave, ClimeCo, a global leader in decarbonization and environmental solutions, has complemented its already deep bench of highly tenured industry experts with the addition of Dan Nugent as Vice President of Industrial Innovations and Government Affairs. 

A highly influential leader in the cement production industry, Nugent brings more than 35 years of experience in environmental compliance and sustainability and a passion for continuous improvement to his new role. Before joining ClimeCo, Nugent was a pioneer and driving force in the effort to decarbonize the cement industry through his senior leadership work at Buzzi Unicem USA, the Portland Cement Association, and the Cement Kiln Recycling Association, where he led environmental permitting, compliance, sustainability programs, and related major capital investments.

“Based on his tremendous expertise in and technical knowledge of the cement and other hard-to-abate industries, and a friendship built on many successful projects over the years, Dan is a major ‘get’ for ClimeCo,” said ClimeCo President and CEO William Flederbach. “Because he truly understands the sustainability journey, he will be an incredible asset not only in our industrial work but to our efforts to affect change at a policy level.”

As part of his new role, Nugent will work closely with multiple ClimeCo groups, sharing key learnings on reducing emissions in traditionally challenging sectors and developing and implementing decarbonization strategies, including fuel substitutions, secondary cementitious material blending, and carbon capture storage and utilization. Additionally, Nugent will help lead ClimeCo’s association consulting and advocacy work in Washington, D.C. He will also focus on expanding the company’s relationship with the Portland Cement Association, where Nugent served on the Board of Directors. 

“As someone who has devoted a large portion of his life to affecting positive environmental change, I am excited to work with a vibrant and impactful company like ClimeCo, which shares my vision and values,” said Nugent. “I am also eager to share what I’ve learned over many years with a broader range of industries and projects.”

A native of Long Island, New York, Nugent holds a Bachelor of Science in Meteorology from Pennsylvania State University. In addition to his passion for environmental causes, he enjoys Penn State football games, outdoor activities, and traveling with his family.

About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related solutions. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complementing these programs is a team of professionals skilled in providing sustainability program management solutions and developing and financing greenhouse gas abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at +1 484.415.0501,, or through our website Be sure to follow us on LinkedIn, Facebook, Instagram and Twitter using our handle, @ClimeCo.

ClimeCo Expands Presence in Singapore with the Hire of Anna Stablum

ClimeCo Expands Presence in Singapore with the Hire of Anna Stablum

Nancy Marshall, SVP, Marketing
+1 484.415.7603 or 

ClimeCo Expands Presence in Singapore with the Hire of Anna Stablum

by: Tori Rocha-Baker | September 14, 2023

BOYERTOWN, Pennsylvania (September 14, 2023)
ClimeCo, a global leader in decarbonization and environmental solutions, announces the expansion of its presence in Singapore with the hire of Anna Stablum as business development director. Stablum is a permanent resident of Singapore and brings extensive experience in the sales and origination of environmental commodities.

“I’m thrilled to have Anna Stablum join our team,” said William Flederbach, ClimeCo’s president and CEO. “ClimeCo is highly active in Asia Pacific, with decarbonization activities in China and Indonesia and plastic collection initiatives in Vietnam, Cambodia and Malaysia, and we are eager to bring our full-service offerings and innovative environmental solutions to the region.”

As companies in Asia increasingly recognize the value of building and preserving natural capital and a climate strategy that embraces decarbonization, ClimeCo has chosen to establish a presence in Singapore, with Stablum as its first employee.

“ClimeCo is the partner of choice, aligning with the values of a growing cohort of companies leading the charge toward a sustainable business model,” noted Stablum. “I am tremendously excited and inspired to support companies in Asia with their carbon abatement ambitions and to contribute to the preservation of Southeast Asia’s delicate natural habitats through ClimeCo’s nature-based solutions approach, which supports the restoration of degraded environments and helps reverse the threat of climate change.”

Before joining ClimeCo, Stablum worked for Climate Impact X in Singapore, where she was instrumental in developing one of the world’s first exchanges for carbon, creating a spot trading platform for high-quality credits. Her comprehensive knowledge of economic fundamentals, market dynamics, trading and platforms, coupled with her valuable insights from a buyer’s perspective, underscore her impressive track record of success.

About ClimeCo

ClimeCo offers a full range of sustainability advisory with a balance of industrial and nature-based carbon solutions that meet the diverse needs of clients’ climate programs. We also provide specialized technical solutions for hard-to-decarbonize industries. From developing methodologies to support GHG reduction innovation to advising on solutions for optimal sustainability impact to reach Environmental, Social, and Governance (ESG) goals, ClimeCo is the right partner to help address environmental challenges.

For more information or to discuss how ClimeCo can drive value for your organization, contact us through our website, Follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.

Accelerating Industrial Decarbonization

Accelerating Industrial Decarbonization

Accelerating Industrial Decarbonization

Every Technology is Needed in the Race to Eliminate Greenhouse Gas Emissions

by: Ken Chlapik, Global Market Manager, Johnson Matthey | August 23, 2023


Decarbonization at Scale Needs to Start Today

To achieve net-zero targets beyond this decade, we will need to convert the electrical grid to low-carbon renewable power, scale up, and adopt green technologies in industry. These green technologies include renewables, hydrogen electrolyzers, batteries, and fuel cells. Accelerating these technologies will require new materials, supply chains, and manufacturing capabilities. Multi-billion-dollar investments must be made to enable this long-term shift to net-zero. More than the pace, scale, and capabilities of these technologies need to be required to meet net-zero targets on their own. To curb global emissions, a technologically aggressive approach to reducing Greenhouse Gas (GHG) emissions that uses all the tools and technologies available is necessary.

Renewable Carbon Sources Sustain the Viability of Petrochemicals Into the Future

In the broader context, the chemical industry’s products contain carbon, which will continue, so a carbon-free chemical industry isn’t possible. However, the industry can and will find ways to use the carbon more efficiently, reducing carbon intensity and CO₂ emissions to levels. As part of this drive, the industry is considering making chemicals using renewable carbon sources, such as biomass, municipal solid waste, and captured CO₂. Combining this carbon with hydrogen generated through electrolysis powered by renewable electricity can create sustainable fuels and chemicals. For example, captured CO₂ and renewable hydrogen can be directly transformed into methanol or converted within the reverse water-gas shift reaction to a Synthetic Gas (syngas) containing CO, CO₂, and hydrogen. Syngas can be further processed through well-established Fischer-Tropsch synthesis processes to make chemicals and fuels. This is one route to make drop-in fuel for airplanes – Sustainable Aviation Fuel (SAF), critical to decarbonizing the aviation industry. In addition, syngas-based technologies can store and transport renewable energy in the form of methanol and ammonia. Low-carbon methanol and ammonia are also being proposed as fuels for sustainable shipping.

Progressing Projects With Sustainability & Longevity in Mind

When considering decarbonization solutions, factoring in the lifecycle emissions associated with implementing a new solution or technology is essential. To utilize hydrogen in the future, energy infrastructure and electric grids must be green. However, waiting for renewable energy to achieve a green electrical grid may be too late in some cases. Therefore, using solutions that decarbonize outside the grid allows the end-user to avoid competition for renewable energy with hard-to-abate sectors and enables significant carbon reductions to be achieved today.

Carbon Capture and Storage (CCS) is a key technology to reduce emissions in hard-to-abate sectors. CCS can be applied to reduce emissions from industrial flue stacks or combined with hydrogen production to create low-carbon hydrogen, replacing conventional fossil fuels. CCS-enabled (blue) hydrogen is a mature and available technology that provides a way to produce large volumes of low-carbon hydrogen. When the critical goal is to reduce emissions, the scalability of CCS-enabled hydrogen and its ability to supply industrial-level heat demand make it a valuable technology to explore in the industry.

Existing hydrogen plants can also be repurposed to create new sources of low-carbon H2. For example, over 40% of the existing hydrogen plants built for refining clean fuels are less than 20 years old. These plants risk becoming stranded assets by waiting to establish renewable grids and electrolytic (green) hydrogen. CCS technologies can be used to expand the working life of existing syngas production assets.  Plants can be further adjusted to meet even more stringent standards by utilizing renewable gas feeds from waste and biogenic sources to provide some of the lowest carbon intensity production.

An alternative view and approach are to replace aged assets with a single greenfield, CCS-enabled hydrogen plant for the most efficient and low-carbon syngas production for hydrogen and petrochemicals. The optimal pathway will be different for each plant as asset age, existing and future production requirements, and differences in capital cost between greenfield and retrofit projects all play a part in determining the best solution.

Flexible & Resilient Solutions for Maximizing CO₂ Capture Amid Uncertainty

Against this backdrop of conditions and challenges, a technology suite stands out as suited to generate low-carbon hydrogen at scale. Autothermal Reformer (ATR) and Gas-Heated Reformer (GHR) technologies provide a single, high-pressure CO₂ stream that makes it easy and economical to capture with very high efficiency (i.e., up to 99%+). These technologies have been used at an industrial scale for decades and remove the need for a separate stream of methane fuel to generate the heat to drive the syngas production reactions. This eliminates the low-pressure, dilute CO₂ stream from fossil fuel combustion that generates heat for the process, a characteristic of the Steam Methane Reformer (SMR) technology predominant today.

ATR and GHR technologies can be used in both greenfield and retrofit applications. As a retrofit, they are integrated to “bolt-on” to existing syngas production assets. This minimizes plot plan, equipment, and resource usage to maximize capital efficiency for reducing high levels of carbon dioxide emissions. For greenfield plants, an ATR-GHR combination is ideal for producing gigawatt-scale hydrogen at the lowest cost and carbon intensity, enabling the replacement of fossil fuel combustion at a scale that is not yet possible for electrolytic hydrogen to achieve. Both applications have a role in reducing the overall carbon intensity of petrochemical production processes and sites.

Starting in the 19th century, around the time of the industrial revolution (1760-1840), the industrial-scale production of chemicals, and later, petrochemicals, has been an influential part of societal change. Since their early beginnings, these industries have constantly evolved, adopting novel processes, technology, and equipment to drive efficiency improvements, increases in quality, and cost reductions. Now the world faces new challenges. As the effects of climate change amplify, a growing number of companies and countries recognize the urgent action needed to reduce human impact on the environment.

Partnerships: The Key to Driving Change

The scale and immediacy of climate change have created a global threat that requires unprecedented levels of collaboration to overcome. To enable change, operators and technology providers must cultivate deep partnerships to a level that hasn’t been seen before. Although we are seeing the seeds of this evolution begin to blossom, more needs to happen to execute the pace and scale of the decarbonization required. Regulation, incentives, and infrastructure are the key factors determining whether this trend continues to grow or is shattered by the realities of uncertain subsidies and the complexity of meeting changing legislation. While these factors are out of an operator’s control, building actionable roadmaps with the right partners can ensure they are prepared for future challenges. The petrochemical industry must adopt ready-now technology that can make an impact today while building the ecosystem for future sustainable production.


About Johnson Matthey & ClimeCo’s Partnership

For over 200 years, Johnson Matthey (JM) has led market transformations and been at the forefront of implementing sustainable change across industries. JM has partnered with ClimeCo to accelerate the adoption of advanced carbon capture solutions in industries, specifically synthesis gas (syngas) producers. Their technology is at the heart of the energy transition, enabling its customers across the petrochemical industry to tackle their decarbonization challenges. As a provider of vital components and technologies for low-carbon hydrogen production and a suite of solutions for SAF and sustainable fuels, JM is a key partner for customers on their journey to net-zero.

About the Author

Ken Chlapik, Global Market Manager for Johnson Matthey’s Low Carbon Solutions, spearheads the development of CLEANPACE™ and ADVANCED REFORMING™ technologies and is a recognized authority in industrial decarbonization. Ken’s career has contributed to tripling SMR-based hydrogen capacity for clean fuels in oil refining during the energy transition, a role recognized by the Peter G. Andrews Lifetime Service Award. His deep expertise, rooted in a Chemical Engineering degree from Northwestern University, is exemplified in published articles and contributions to the ICAC and AFPM, accelerating decarbonization in refining and petrochemicals around the world. 

EPA Proposes Emission Limits for Fossil Fuel-Fired Power Plants – Is Industry Up for the Challenge?

EPA Proposes Emission Limits for Fossil Fuel-Fired Power Plants – Is Industry Up for the Challenge?

Nancy Marshall, SVP, Marketing
 +1 484.415.7603 or

EPA Proposes Emission Limits for Fossil Fuel-Fired Power Plants – Is Industry Up for the Challenge?

by: Noah Gannon | August 16, 2023

Boyertown, Pennsylvania (August 17, 2023) –
On August 8, 2023, the public comment period ended for the Environmental Protection Agency (EPA) proposed Clean Air Act emissions limits and decarbonization technology guidance for fossil fuel-fired power plants in the United States. The proposed rule considers how different Electricity Generating Units (EGUs) are used, including the resource type and load capacity, and prescribes control technologies such as Carbon Capture and Storage (CCS) and Hydrogen co-firing to reduce emissions.

Scientists estimate the proposal, if enacted, will reduce 617 million tonnes of CO2 emissions by 2042. Additionally, economists value potential associated benefits at $64-$85 billion, including health benefits, such as 1,300 avoided premature deaths and 300,000+ cases of asthma symptoms.

In anticipation of potential legal challenges, the EPA structured the current proposal within the context of the recent 2022 West Virginia vs. EPA decision in which the Supreme Court limited the EPA’s rule-making authority.

Client Impacts

The proposed rule presents both challenges and opportunities for the energy industry. Challenges include extensive capital expenditure costs, limited CCS and hydrogen supply and infrastructure, a volatile regulatory climate, and a lack of regulatory frameworks to enable use and large-scale deployment of these projects.

However, CCS and low-GHG hydrogen offer asset owners the opportunity to entrench their existing infrastructure investments within the energy landscape and provide a dispatchable low-carbon energy resource to utilities looking to balance daily and seasonal renewable energy fluctuations.

Alternatively, some asset owners may consider reducing capacity to under 20% to avoid implementing any controls or under 50% to qualify as an intermediate load with less stringent standards. There will be impacts on grid reliability if a mass shutdown of gas-powered resources occurs before the buildout of batteries and other forms of energy storage.

Proposed Technology-Based Standards

The proposal consists of Technology-Based Standards designed to allow the power sector continued resource and operational flexibility, facilitate long-term planning, and consider the cost-effectiveness of emissions controls. Specifically, the proposal requires CO2 emissions control at fossil fuel-fired power plants starting in 2030 and phases in increasingly stringent CO2 control requirements over time. The proposed requirements vary by:

  • The type of unit rather than fuel type (i.e., new or existing, combustion turbine or utility boiler, coal-fired or natural gas-fired)
  • How frequently it operates (base load, intermediate load, or low load (peaking), and
  • Its operating horizon (i.e., planned operation after certain future dates).

These variations hope to achieve the Standard’s goals of cost-effectiveness and operational flexibility. For example, the installation of controls such as CCS for coal and gas plants and low-GHG hydrogen co-firing for gas plants are more cost-effective for power plants that operate at a greater capacity, more frequently, or over extended periods. The table below outlines the Best System of Emissions Reduction (BSER) by phase and unit type.

Low-GHG Hydrogen Pathway

As shown above, the low-GHG hydrogen pathway offers an incremental approach through hydrogen co-firing to reduce emissions with increasing volume as hydrogen supply networks are developed. The proposed carbon intensity of low-GHG hydrogen at 0.45 kgCO2e/kgH2, “well-to-gate,” is exceptionally aggressive and much lower than all international Low Carbon Standards, as shown in the graphic below.  As a result, this standard may be met with blue (coal/natural gas feedstock) and green (renewable energy feedstock) hydrogen, as well as pink (nuclear-powered) hydrogen.

The International Energy Agency predicts total hydrogen production will need to be 180 MMT by 2030, up from 90 MMT today, to reach net zero emissions by 2050. Currently, low-GHG hydrogen production represents only 1% of total hydrogen production, challenging project developers to increase product while greening their hydrogen process with renewable resources to meet new regulatory requirements, like the EPA’s proposed standards.

At current U.S. power demand and portfolio, about 1.5 trillion kWh is produced annually by gas turbines subject to this ruling [1]. Assuming a standard combined cycle unit has a 60% overall efficiency, 30% hydrogen co-firing would require 747 billion kWh of raw energy, almost 10X current hydrogen production levels. In creating this rule, the EPA attempts to dramatically scale hydrogen demand in the U.S.

The energy needed to produce hydrogen leads to as much or more energy used to produce hydrogen as is recovered when the hydrogen burns.

If project developers can create a supply, hydrogen transportation will present another hurdle. Hydrogen can be transported by pipeline, tanker, rail, and truck, but ammonia and liquefication are the best delivery methods for longer distances and have the biggest impact on costs. Approximately 1,600 miles of hydrogen pipelines are currently operating in the U.S., primarily in the Gulf Coast region, in support of petroleum refineries and chemical plants [2]. Converting the nations existing natural gas pipeline to carry a blend of hydrogen would only require modest upgrades compared to more substantial modifications for pure hydrogen. Industry initiatives and the DOE H2Hubs program take a grassroots approach to increasing regional engagement.

Importantly, the Inflation Reduction Act (IRA) includes Hydrogen Production Tax Credits, which offer producers $3/ kg H2 for ten years for low-GHG carbon intensity for projects that begin construction by 2033 with retrofit facilities eligible. While direct pay and transferability allow revenue streams for companies with low tax liabilities, the credit cannot be stacked with the Carbon Capture and Sequestration Credit (45Q), which may disincentive co-locating CCS and low-GHG hydrogen controls.

Using electricity to produce hydrogen, only to be re-converted into electricity through co-firing, results in as much or more energy being lost than is recovered for grid use. This makes hydrogen co-firing for electricity a much less efficient process than traditional electricity transmission. We believe hydrogen is better applied in the transportation industry given its quick refueling, easy adoption, and decent conversion efficiency for fuel cells and hydrogen-compatible ICEs. This leaves CCS as the most practical and economically viable control technology for fossil fuel-fired power plants in the U.S.

Carbon Capture and Sequestration (CCS) Pathway

According to the IEA, Carbon Capture and Sequestration projects capture more than 45 million tCO2 annually from 40 facilities globally. Although CCS deployment has increased with over 500 projects in various stages, the IEA estimates that deployment remains substantially below the level required to achieve net zero emissions by 2050. Similar to low-GHG hydrogen, project developers face a handful of challenges in meeting CCS demand generated from new regulatory requirements:

First, CO2 lacks national pipeline infrastructure but has a history of industrial uses, primarily enhanced oil recovery (EOR). This infrastructure is primarily in the Gulf Region and the Dakotas. Last month, Exxon Mobile bought Denbury, the largest CO2 pipeline network in the country, in a bid to accelerate Exxon’s carbon capture goals.

The Department of Energy has also prioritized CO2 transportation and sequestration, with $8.5B earmarked for CCS in the infrastructure package. The bill envisions four regional direct air capture hubs, prioritizing localized networks over a nationwide pipeline.

The IRA included a Carbon Capture and Sequestration Credit (45Q), which offers up to $85 per tonne for storage of CO2 in deep saline geologic formations. For other uses, such as low-carbon fuels, chemicals, building materials, or enhanced oil recovery (EOR), the credit falls to $60 per tonne, with direct pay for the first five years after the equipment is placed in service.


States will have 24 months to submit plans establishing performance standards and transparency requirements for power plants within their state borders if the proposed rule is enacted, as shown in the timeline below. Plans must include an environmental justice analysis of impacted communities and meaningful engagement with affected stakeholders. States are encouraged, but not required, to develop emissions trading and averaging schemes. A less stringent standard may be requested for facilities with long-remaining useful lives.

The future of this legislation is not certain. Four major grid operations — PJM Interconnection, Midcontinent Independent System Operator, Southwest Power Pool, and the Electric Reliability Council of Texas — have filed joint comments that grid reliability will “dwindle to concerning levels.” A coalition of 21 states, led by West Virginia, have also filed comments warning about the legal implications of the rule. With the 2024 presidential election approaching, a Republican administration could repeal this rule before the enforcement period begins. Individual states and joint ISOs/RTOs must decide if they will proactively plan for controls or wait and see, hoping external players derail technology implementation and CO2 standards.

[1]  Regional Clean Hydrogen Hubs | Department of Energy
[2]  Electricity data browser – Net generation for all sectors (

About ClimeCo

Over the last 14 years, ClimeCo has supported corporates in hard-to-abate sectors and energy asset owners in decarbonizing their operations by evaluating policy updates and incentives, supporting decarbonization project implementation, leveraging environmental markets, and becoming trusted decarbonization technology experts. Please inquire with the ClimeCo team to learn more about our case studies and service offerings.

Contact us at +1, or through our website to learn more. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.